• Kotak Mahindra Bank Stock Ace

    Kotak Mahindra Bank, or Kotak as people normally refer to the bank, offers a specialised loan for that cashes in on the value of investments made by the applicant. Investments are generally made to avail long term benefits, but they score low on liquidity. This loan aims to change that, by providing capitalisation options on investments in securities like equity shares, mutual bonds and insurance policies, as well as through an overdraft facility. The loan amount is by all means a personal loan with an added advantage of lower interest rates.

    Where can I use Kotak Stock Ace financing?

    Kotak Stock Ace can be utilised for practically any purpose as the bank doesn’t impose any limitations on the loan usage. This kotak personal loan is an annually renewable one, so one can easily avoid paying excess interest by just refraining from renewing the loan.

    Who can avail financing through Kotak Stock Ace?

    The loan provided against investment securities can be availed specifically by all resident individuals who have invested in securities approved by Kotak Mahindra. Other entities are not permitted to avail loan or overdraft through this facility.

    What types of financing are available with Kotak Stock Ace?

    • Term loan
    • Overdraft

    How much loan can be availed through Kotak Stock Ace?

    The loan or overdraft amounts under the Stock Ace facility depend upon the securities that are held by the applicant. As per the value of those securities, 50% of the value of the shares is the admissible drawing power given to a customer, subject to the higher limit of INR 20 lakhs. The minimum amount of loan or overdraft that can be sanction is INR 5 lakhs.

    The loan applied is for a tenure of 1 year and is renewable for another year post that.

    What are the interest rates?

    Interest payable on Kotak Stock Ace varies as per the usage of the amount. The rates are based on the discretion of the bank. Overdraft amount that is actually used and for the amount of time used will be used for calculation of interest, irrespective of the overdraft limit issued. Similarly, loans through Stock Ace are charged for a year at nominal rates defined by Kotak Mahindra.

    What are the documents required for applying for Kotak Stock Ace?

    • Stock Ace account opening documents and KYC documents
    • Income tax assessment for the last 2 years
    • 3 months’ primary bank’s statements
    • Latest Demat account statement
    • Client master list for the Demat Account provided

    What else do I need to remember?

    • Lending on any basis is not allowed in the following cases
      • Partly paid up shares
      • Physical shares
      • Lock-in shares
      • Minor-owned scrips
      • Shares of Kotak Mahindra bank
    • Stocks/shares used for availing financing should be on Kotak’s approved list of securities
    • In case of loans, the furnishing of the same will be done at the discretion of the bank and Kotak bank might employ services of marketing agents for sourcing assets of loan
    • Processing charges are applicable as per the rates for current accounts with Kotak Mahindra
    • Standard fees and charges are applicable for products and services offered through the current account linked to Stock Ace

    How to apply for Kotak Stock Ace Financing?

    This financing can be applied for online at Kotak Bank’s website or at any physical branch. One should possess the necessary documentation to be submitted at the time of applying for this financing option.

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